{"term":{"slug":"win-rate","term":"Win Rate","definition":"The percentage of trades that result in a profit. A 60% win rate means 6 out of every 10 trades are winners. Win rate alone does not determine profitability -- it must be considered alongside risk-reward ratio.","extendedExplanation":"Win rate is one half of the profitability equation. A trader with a 90% win rate but 1:10 risk-reward (risking $10 to make $1) will lose money. A trader with a 30% win rate and 1:5 risk-reward (risking $1 to make $5) will be profitable.\n\nFor prop firm evaluations, the required minimum win rate depends on your risk-reward ratio. At 1:1 risk-reward, you need above 50% win rate. At 1:2, you need above 33%. At 1:3, you need above 25%. Most successful prop firm traders operate in the 45-65% win rate range with 1:1.5 to 1:3 risk-reward.\n\nConsistency rules add another dimension. Even with a high win rate, if most of your profits come from a few big winning days, you may violate the consistency rule. This means the distribution of wins matters as much as the overall win rate.","exampleWithNumbers":"Prop firm evaluation with $6,000 profit target. Strategy A: 65% win rate, 1:1 risk-reward, $300 risk per trade. Expected profit per trade: (0.65 * $300) - (0.35 * $300) = $90. Trades needed: 67. Strategy B: 40% win rate, 1:3 risk-reward, $300 risk per trade. Expected profit per trade: (0.40 * $900) - (0.60 * $300) = $180. Trades needed: 34. Strategy B reaches the target in half the trades despite lower win rate.","category":"risk","relatedTerms":["risk-reward-ratio","consistency-rule","break-even-point","drawdown-recovery"]},"_links":{"self":"https://runvigil.app/api/glossary/win-rate","page":"https://runvigil.app/learn/win-rate","allTerms":"https://runvigil.app/api/glossary","learn":"https://runvigil.app/learn"}}